457 Visa Update – October 2017

As previously flagged in one of our earlier updates, the 457 visa program will transition to the Temporary Skills Shortage (TSS) Visa from March 2018. It is expected that there will be ongoing changes to the requirements businesses need to meet in order to nominate visa holders. This update relates to some of the recent changes for businesses and 457 visa holders.

Changes to Market Salary Rate Requirements

The Department of Immigration & Border Protection (DIBP) has strengthened ‘market salary’ requirements, meaning employers will need to provide additional documentation to show they are paying their visa holders equivalent market salary rates to local workers.

In an initiative to prevent visa holders from being exploited where there is no Australian-equivalent employee, employers will need to:

§ Provide a written statement outlining how they have determined the pay for an equivalent Australian worker

§ Prepare references to the job outlook and prospects of the role in the Australian market.

This extra documentation is required in addition to the usual evidence requirements businesses must show to ensure Australian market salary rates have been met.

Labour Market Testing Evidence Arrangements

Businesses who have lodged a nomination application on or after 1 October 2017, will need to provide additional evidence to show they have adequately tested the local labour market.

The main changes for businesses are as follows:

§ A copy of relevant advertisements will need to be provided, including evidence of the duration of the advertising period;

§ Receipts for any advertising fees paid to be submitted at the time of application;

§ Advertisements also need to be nationally accessible, for example through a service such as SEEK, MyCareer, LinkedIn, Gumtree and alike;

§ The Domestic Recruitment Table will no longer be accepted by DIBP as a way of demonstrating that the Australian labour market has been tested.

When the 457 visa program transitions to the Temporary Skills Shortage (TSS) Visa in March 2018, businesses may need to meet additional labour market testing requirements. Further information is expected from DIBP in coming months.

The DIBP states that these changes aim to ensure overseas professionals are nominated for positions which demand skills and experience that are difficult to source locally.

Permanent Residence Prospects for Employees Currently on a 457 visa

We can confirm existing subclass 457 visa holders or applicants as at 18 April 2017 will continue to have access to an employer sponsored pathway to permanent residence, however the policies governing the transitional provisions are yet to be confirmed by DIBP. The DIBP has stated it hopes to advise of this before the end of the year.

Managing the 457 visa changes

To support businesses throughout the 457 changes, Nevett Ford Lawyers can advise your business on how to manage and prepare for the additional requirements to nominate visa holders.

Contact us today and speak to one of our team of immigration lawyers and registered migration agents for more information: